Uber and Ola Get Clean Chit From CCI; Rejects Complaints Of Unfair Business


16 February, 2016, New Delhi: Uber and Ola finally get a clean chit from Competition Commission of India as it rejects the allegation of unfair business ways against the two giants. The plea was rejected on the basis no evidence of anti-competitive practices by them in the national capital. The complaints were filled separately by their competitors Mega Cabs and Meru targeting Ola and Uber respectively on the grounds of practising unfair business such as predatory pricing. The report further stated that due to unprofessional business carried by the duo, their competitors have been suffering a lot.

Taxi hailing apps and radio tax service providers are engaged in stiff competition in different markets across the country. It was alleged that Ola and Uber raised huge amount of funding in several round which is helping them to unleash the anti-competitive practices, reports PTI.

However, the complaints were dismissed by the CCI and it stated while clearing away the charges from both the companies, “The allegations made are opposed to the basic tenets of competition law”.

“Inability of the existing players or new entrants to match the innovative technology or app developed by any player or the model created for operating in a particular industry cannot be said to be creating entry barriers in itself,” the order stated further.

“The Commission is of the view that the radio taxi services market in Delhi is competitive in nature and Uber does not appear to be holding a dominant position in the relevant market. Since Uber group does not seem to be dominant in the relevant market, there is no need to go into the examination of its conduct in such relevant market,” said CCI’s order.

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